Federal authorities have seized over $61 million in Tether, a cryptocurrency linked to the U.S. dollar, following an investigation into online investment scams known as “pig butchering schemes.” The announcement came from the United States Attorney’s Office for the Eastern District of North Carolina.
According to court documents, criminals targeted victims by first gaining their trust through fake romantic relationships. After building trust, the scammers claimed they had special methods for making large profits through cryptocurrency trading. They then directed victims to fraudulent trading platforms designed to look like legitimate ones, complete with false portfolios showing high returns to encourage further investments. When victims tried to withdraw their money, they were denied and told they needed to pay additional “taxes” or “fees,” allowing scammers to extract even more funds.
Once obtained, the stolen money was transferred into cryptocurrency wallets controlled by the scammers and quickly moved through various other wallets in an attempt to hide its origin and ownership. In this case, Homeland Security Investigations (HSI) agents in Raleigh received a report of suspected fraud via the HSI Tip Line. Their investigation tracked the victim’s funds across several cryptocurrency wallets involved in both fraud and money laundering activities. Some of these wallets still contained significant amounts that were subject to seizure.
“Criminal actors and professional money launderers use cyber-enabled fraud schemes to swindle their victims and conceal their ill-gotten gains,” said HSI Charlotte Acting Special Agent in Charge Kyle D. Burns. “HSI special agents work diligently to trace the illicit proceeds of crime across the globe to disrupt and dismantle the transnational criminal organizations that seek to defraud hardworking Americans.”
